Medicare premiums are planned to increase in 2024 from the values they had in 2023. After an unusual and rare experimental decrease last year in deductible costs, increases are expected for the coming year.
To get the most out of your medical plan, we tell you some important details about the costs and benefits that could vary in the coming year, as well as the different plans that exist so that you can choose the one that best suits your needs.
There is still a long time to go until the Medicare Open Enrollment opens, which takes place between October 15 and December 7 of each year. The new Medicare premium amounts for 2025 will be announced as soon as the enrollment period begins. For now, we can tell you what is being paid in 2024 so that you can get an idea of how much it can increase in the following year.
Medicare Part A Deductibles and Costs
The Part A deductible for hospital admissions will see an increase of $32 in 2024, reaching $1,632. This deductible covers the first 60 days of Medicare-covered inpatient hospital care in a given benefit period.
There is no limit to the number of benefit periods a patient can have in a year. This means that you can pay the deductible more than once per year if you need to receive covered care more than once. For those patients who are hospitalized in a medical event for more than 60 days, the coinsurance amount will increase in 2024 from $400 to $408 per day from the 61st to the 90th day of hospitalization.
This deductible goes up from $800 to $816 starting on the 91st day. For beneficiaries in skilled nursing facilities, the daily coinsurance for the 21st to 100th days of the extended care service will increase from $200 to $204 per day.
Medicare Part B Deductibles and Costs
During 2024, the standard Medicare Part B monthly premium will be $174.70, $9.80 higher than in the previous year. The annual deductible that applies for all Medicare Part B beneficiaries will be $240 in 2024, that is, $14 more than the deductible of 2023, which was $226.
Part B covers doctor visits, outpatient services, home health care, durable medical equipment, and many preventive services. Generally, 20% of the Medicare-approved amount is paid for Part B-covered services after the deductible is met. This amount is called coinsurance.
Medicare Part D Deductibles and Costs
The average Part D premium, which covers drug costs, will be about $55.50 per month in 2024, up from $56.49 in 2023. Seniors with high drug costs may encounter a coverage gap, although it has been narrowing.
In 2024, once you and your plan spend a combined $5,030 on drugs, including deductibles, you typically won’t pay more than 25% of the cost of prescription drugs until your out-of-pocket expense is $8,000 in 2024. The 75% discount on the cost of branded and generic drugs is financed by drug manufacturers (70%), insurers (5%) and you pay the remaining 25%.
Once your out-of-pocket expense reaches $8,000, you won’t have to pay any copayments or coinsurance for covered Part D drugs for the rest of the calendar year; Medicare covers most of the cost. The $8,000 includes what the drug manufacturers paid on your behalf and assistance from the Medicare Extra Help program.
A high-income surcharge also applies to your Medicare drug coverage (Part D). In 2024, if your income exceeds $103,000 if you file an individual return or $206,000 if you’re married and filing a joint return, you’ll pay an additional amount on top of your plan premium. That surcharge ranges from $12.90 to $81.00. You’ll also have to pay this additional amount if you’re in a Medicare Advantage plan that includes drug coverage.
What is Medigap?
Medicare does not cover everything. This has often been called the “gap period.” Part B pays for only 80% of doctor visits and other outpatient services. In addition, Medicare does not cover dental care, eye appointments, or hearing aids. You have two options to deal with your uncovered expenses. You can purchase supplemental insurance to supplement your Original Medicare insurance or enroll in a Medicare Advantage plan.
Some Medigap policies also offer coverage for services that Original Medicare does not cover. Generally, Medigap does not cover long-term care, such as nursing home care, eye or dental services, hearing aids, eyeglasses, or private nursing.
Private insurers offer Medicare supplement insurance or Medigap policies and cover deductibles and co-pays. Medigap policies are categorized by the letters A through N. Each policy that carries the same letter should offer the same basic benefits; usually the only difference is the cost. All plans offer the same basic benefits, no matter where you live or which insurance company you buy the policy from.